Delaying Your Annuity

Pensioners are no longer obligated to buy a pension annuity by their 75th birthday, and neither is it mandatory to start drawing retirement income on the date that was originally chosen for retirement. You can delay taking your retirement income depending on the rules or the contract terms of your specific pension scheme.

You can also delay taking your state pension, for example, if you want to continue working because you haven’t made up your qualifying 35years to receive a full state pension. Or if you do not need the income from the state pension, if you delay it for a minimum of 9 weeks you may receive extra money, it works out just under 5.8% per annum by delaying it a year. Delaying your state pension will not prevent you from receiving your retirement income and any tax-free cash from your company/private pensions.


But there is little to be gained from a deferred annuity. In fact, you may end up losing out. For starters, you could end up being taxed if you die or take a lump sum due to severe ill health before you secure your annuity. And delaying your annuity in the hope of securing a better deal at a later date could also be counterproductive – you may not live to see benefits. Experts recommend buying an annuity when it is needed rather than delaying it.


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Contact us

You can also request contact details from the Pension Tracing Service by phone or by post.

The Pension Tracing Service
Telephone: 0800 1223 170
From outside the UK: +44 (0) 1782 389134
Monday to Friday, 9:00 am to 5:30 pm

Address
The Pension Tracing Service
400 Pavilion Road
Northampton
NN4 7PA

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The Pension Tracing Service ® is a trading style of the Better Retirement Group Ltd. We are authorised and regulated by the Financial Conduct Authority. FCA number 153420. Our registered office is 400 Pavilion Road Northampton NN4 7PA ​

This service is not affiliated with the Department of Work and Pensions or any government body. The Pension Tracing Service does not offer financial advice to our clients. However we can allocate you an Authorised and Regulated Pension Specialist.

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